The Contrarian's Edge: Why Amgen and AI-Driven Energy Infrastructure Are Undervalued Gold Mines

Jim Cramer has long been a voice for contrarian investing, and his recent analysis of Amgen (NASDAQ:AMGN) and overlooked energy infrastructure stocks underscores a compelling opportunity in two sectors that are flying under Wall Street's radar. While tech and AI stocks dominate headlines, Amgen's undervalued fundamentals and the hidden growth potential of nuclear/LNG infrastructure firms offer superior risk-adjusted returns. Let's break down why these plays could be the smartest bets of 2025.

Amgen: A Biotech Bargain in a Speculative World

Cramer's contrarian stance on Amgen is clear: the stock trades at a 14x P/E ratio, absurdly low for a company with a diversified portfolio of blockbuster drugs and a 3.65% dividend yield. The market is ignoring three key catalysts:

1. Repatha's Quiet Success: This cholesterol-lowering drug is underappreciated despite studies proving its life-saving efficacy. Sales are growing steadily, yet the stock hasn't reflected this.
2. MariTide's Moonshot Potential: Amgen's weight-loss drug, requiring monthly injections (vs. weekly for rivals like Ozempic), is a game-changer. While initial trial data caused a knee-jerk sell-off, Cramer argues the stock's 6% drop was overdone. Phase 3 trials targeting FDA approval by late 2027 could unlock $10 billion in revenue.
3. A Dividend Machine: Amgen's stable cash flow and annual dividend hikes make it a rare “blue-chip” in a volatile market.

Why It's Undervalued: Investors are chasing AI hype, ignoring Amgen's tangible earnings. Cramer sees this as a buying opportunity, especially post-pullbacks.

The AI Energy Crunch: Why Nuclear and LNG Are the Real Winners

While AI stocks like NVIDIA (NVDA) and Alphabet (GOOGL) grab headlines, the energy infrastructure needed to power their data centers is being overlooked. Enter Energy Fuels (UUUU) and Venture Global (VG)—two plays that align with Trump-era policies and the AI boom's insatiable energy demand.

Nuclear Power: The Critical Minerals Play

Energy Fuels (UUUU):
- Benefits from Executive Order 14017, which prioritizes domestic uranium production to reduce reliance on Russia and China.
- Its White Mesa Mill is a rare U.S. facility processing uranium—a critical fuel for nuclear power plants that AI data centers increasingly depend on.
- Shares are undervalued at just $3.50, down 40% YTD despite rising uranium prices.

LNG Infrastructure: The Global Supply Chain Play

Venture Global (VG):
- Building the $10 billion CP2 LNG terminal in Louisiana, which will double U.S. LNG export capacity.
- European demand for LNG (replacing Russian gas) and Asia's energy needs are driving long-term contracts.
- Shares have lagged since its 2021 IPO but now trade at 12x EV/EBITDA, a steal compared to peers like Cheniere (LNG).

Why These Are Contrarian Plays:
- Both stocks are shunned for their perceived ties to “old economy” energy.
- They're beneficiaries of Trump's deregulation and tariffs, which streamline permitting and protect domestic supply chains.

The Contrarian's Playbook: Buy the Neglect

1. Amgen (AMGN): A 3% pullback is a buying opportunity. Target $260-$270, with a stop below $230.
2. Energy Fuels (UUUU): Accumulate on dips below $4.00; $5.50 is a 2025 target.
3. Venture Global (VG): Wait for a correction below $25.00; $35+ is achievable by year-end.

Risks to Avoid:
- Amgen's reliance on legacy drugs facing biosimilar competition.
- LNG's exposure to global gas prices and geopolitical risks.

Final Take: The Best Bets Avoid the Hype

Cramer's contrarian lens reveals that value lies in underappreciated fundamentals, not speculative manias. Amgen's dividend and drug pipeline, paired with nuclear/LNG stocks' infrastructure plays, offer a safer path to growth in 2025. Investors chasing AI's “next big thing” may overlook these undervalued gems—but that's exactly why they're poised to deliver outsized returns.

Act now—before the market catches on.

Investment advice: This article is for informational purposes only. Always conduct your own research and consult a financial advisor before making investment decisions.